Shares in Snap Inc. dropped by over 13% in late trading today after the company declined to provide guidance alongside its quarterly earnings report today, citing macroeconomic uncertainties.

The first-quarter report results, however, did come in ahead of expectations. For the quarter that ended on March 31, Snap reported an adjusted loss of eight cents, down from a loss of 19 cents per share in the same quarter of 2024, on revenue of $1.363 billion, up 14% year-over-year. Both figures were ahead of the 13-cents-per-share loss and revenue of $1.34 billion expected by analysts.

The company delivered a significant improvement in its bottom line, narrowing its net loss to $140 million, a 54% improvement from the same period last year. Adjusted earnings jumped 137%, reflecting stronger operational efficiency.

Rising user numbers were key to Snap’s growth, with the company reaching more than 900 million monthly active users, a new milestone on the company’s path to achieving 1 billion monthly users. Meanwhile, daily active users increased 9%, to 460 million, representing an additional 38 million users.

More users usually equals more advertisers and Snap didn’t disappoint, seeing active advertisers on the platform grow 60% year-over-year through the quarter, with strong growth from small and medium-sized businesses advertising on Snap.

The company also highlighted that over 10,000 Lenses were created using its Easy Lens tool in the quarter, generating more than 2 billion impressions, and noted that downloads of Lens Studio more than doubled year-over-year. The Easy Lens tool is an artificial intelligence-powered tool that simplifies the creation of augmented reality Lenses, enabling users to generate immersive AR experiences without needing advanced technical skills.

“We surpassed an important milestone in Q1, with our community growing to over 900 million monthly active users,” Chief Executive Evan Spiegel said in the company’s earnings release. “Quarterly revenue increased 14% year-over-year, driven by the progress we have made with our direct-response advertising solutions, continued momentum in driving performance for small and medium-sized businesses and the growth of our Snapchat+ subscription business.”

Snap did not provide guidance, stating in an investor letter that “given the uncertainty regarding how macroeconomic conditions may evolve in the months ahead and their potential impact on advertising demand more broadly, we do not intend to share formal financial guidance for Q2.”

Snap did, however, say that it expected its daily active users to come in near the midpoint of 468 million in the quarter ahead.

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